Last November 51.4% of Richmond residents voted against building a new $565 million Casino, on the south side of the city, backed by Urban One. Last night the Richmond City Council voted 8-1 to put the proposal on the ballot for another vote.
A majority of the council decided this was too good of a deal to pass up and promised to cut property taxes if the proposal went through this time. They want CEO Alfred Liggins to show more specific details about how the project will positively impact the city.
Liggins spoke at the hearing last night. According to Richmond BizSense, Liggins said, “Many referendums are reheard, particularly if the project and the benefits of the project have changed. I applaud the administration and council for starting the discussion tonight on the main issue I heard from people of where the dollars are actually going, who was going to benefit.”
According to the paper, councilmembers also stressed that the casino project would not cost the taxpayers any money, and they believe many voters were given the wrong information that they would be paying for the casino.
After years of planning, and millions of dollars spent, voters in Richmond voted down Urban One’s proposed Casino by a margin of just under 3%. Five Virginia cities voted on casino referendums last November; Richmond was the only one to not pass.
The project is estimated to cost approximately $563 million and Urban One’s aggregate capital investment in RVA Entertainment Holdings, LLC (RVAEH) is anticipated to be up to approximately $100 million. The Company’s investment will be sourced from a combination of cash on Urban One’s balance sheet and/or capacity from the Company’s undrawn $50 million revolver. The Company also anticipates investment from local investors in the amount of $11.5 million dollars as well as a personal investment by Urban One CEO Alfred Liggins.